The Numbers of Real Estate
It is all in the numbers with real estate. The real estate coaching system I was apart of for a month really hit this home with me. I needed to look seriously at my numbers if I wished to survive and make a profit. You invest in a property, which is like buying a bond, and the monthly rental check is similar to a bond coupon. Now the ratio of the price you paid for the property and the rent you receive annually is equal to your yield. If the property cost you $400,000 and you receive a total of $12,000 in rent you would be yielding a 3.00% return.
